Reserve Studies - The Complete Guide is 436 pages explaining the concepts and process for making a reserve study. For more information and to order, click here.

 

 

Facilities Advisors International

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HOMEOWNERS ASSOCIATION RESERVE STUDY SERVICES

Facilities Advisors International is your preferred Provider for Reserve Study Services.
We have the unique combination of experienced construction knowledge, financial forecast and reporting expertise, and the most powerful software in the industry.
Put our unique team to work for you.

RESERVE STUDIES

Your association is charged with the responsibility to maintain certain facilities. Many of these are infrastructure facilities that don't have any counterpart in the private sector. In addition, you operate and maintain buildings, rolling stock, recreation, and other equipment.

Associations have the rather difficult task of being required to charge user assessments that do not exceed costs (no profits), yet include complete cost recovery (no losses). While most associations do an excellent job of analyzing current costs, most do a less accurate assessment of their long-term system replacement costs. That's where we come in. We have performed hundreds of Reserve Studies since performing our first one in 1982. The goal is to produce an accurate financial projection that considers all factors affecting the ultimate long-term repair or replacement of fixed assets; those items generally not subject to the annual operating budget.

Three important reasons for why Facilities Advisors International should be your first choice for Reserve Studies:

1. Competitive Fees

Our fees are competitive at every level. We are prepared to provide any level of service you request, including a full site inspection with digital photographs.

2. Useful and understandable report.

We provide a one or two-page executive summary of each major part of the report, followed by the details. The summary allows you to grasp the major contents of the report at a single glance, with the details as back-up information.

a. We provide a summary that allows you to meet the disclosure requirements of the State Civil Code for member disclosures. (See attached example)
b. Our Site Observations Comments section of the report will discuss observations and noted deficiencies in your maintenance programs or areas that require further attention.

c. We include the necessary disclosures required by the American Institute of CPAs for you to provide to your auditor.

3. Experience and knowledge
We have 27 years experience.

Please see Additional Services and Information, attached.


Associations have the rather difficult task of being required to charge user assessments that do not exceed costs (no profits), yet include complete cost recovery (no losses). While most associations do an excellent job of analyzing current costs, most do a less accurate assessment of their long-term system replacement costs. That’s where we come in.

We have performed hundreds of Reserve Studies since performing our first one in 1982. The goal is to produce an accurate financial projection that considers all factors affecting the ultimate long-term repair or replacement of common area assets; those items generally not subject to the annual operating budget. We have worked with clients in several states, and our practice extends nationwide.

A Reserve Study is a financial projection that calculates the funding requirements to replace not only your infrastructure assets, but also all assets owned and operated by the association. Your financial projection and report is prepared by a CPA, resulting in a report that is understandable, useful, and that makes sense. Our study will cover a 30-year period and will incorporate inflation, estimated interest earnings and income taxes, financing programs and repayment of debt. We can project level funding requirements, funding plans linked to estimated inflation rates, or customized plans. The net result is a funding plan that can be incorporated into your dues structure, giving you an accurate picture of your cost recovery needs.

Facilities Advisors International should be your choice for reserve studies, because we not only provide the three important things that a reserve study should provide, but we also meet the three criteria that are important to you. We have over 27 years of reserve study experience, making us one of the longest term players in the industry, and we work interactively with our clients to make sure that the report is right. If you’re not satisfied, we’re not satisfied.